The country’s government has enacted a bill requiring financial supervision of cryptocurrency exchanges. According to local news site Vlast, crypto firms in Kazakhstan may soon be subject to Anti-Money Laundering (AML) rules, as a result of new legislation voted by the country’s upper chamber of parliament today.
The new legislation broadens the scope of the country’s financial surveillance apparatus to include cryptocurrency service providers.
Additionally, the proposed law would create a legal institution for public officials. When a business in Kazakhstan begins offering cryptocurrency trading or issues digital assets, the Ministry of Digital Development, Innovation, and Aerospace Industry must be notified. The institution will be responsible for performing a risk assessment and ensuring compliance with Know Your Customer and anti-money laundering legislation.
Senator Olga Perepechina, according to Vlast, claimed that Kazakhstan’s financial monitoring system does not presently include legal firms that manage digital assets, coordinate trade, or provide services for the conversion of cryptocurrencies into cash, physical products, or other property.
The senator cautioned that this lack of control facilitates the fast expansion of money laundering and terrorist funding activities, as well as the rise of the underground economy. Cybercriminals, especially terrorists, are encouraged to settle their cases using digital assets and electronic techniques, she cautioned.
However, Kassym-Jomart Tokayev, the country’s president, has not yet authorized the idea. Tokayev previously urged for “immediate” regulation of another cryptocurrency activity, Bitcoin (BTC) mining, citing the country’s energy shortfall. The Central Asian country, which has some of the world’s cheapest power, has risen to prominence as a Bitcoin mining hub as China’s crackdown intensifies.
As reported by Cointelegraph, Kazakhstan anticipates that cryptocurrency mining will contribute at least $1.5 billion to the country’s economy within five years. The nation now ranks second in the world in terms of mining hash rate, after the United States.
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